After getting beaten down by investors following Sprint's (NYSE:S) network-sharing deal with LightSquared at the end of July, Clearwire (NASDAQ:CLWR), saw its shares rise 20 percent on Friday on speculation that it could receive more funding from Sprint, which is the company's largest owner and wholesaler.
Clearwire's stock was up 32 cents to $1.91 a share on Friday.
The Wall Street Journal reported late last week that Sprint is expected to make a substantially large new investment in the company, which would help clear up uncertainty over Clearwire's funding future.
The report, which cited unnamed sources familiar with the matter, cautioned that no final decision on funding Clearwire has been made. One source told the Journal that the exact size and timing of the investment will depend on how quickly Clearwire can restructure its operations. The funding would help Clearwire into 2013. Sprint is expected to detail more of its 4G strategy at an investor meeting Oct. 7.
Clearwire has insisted it has enough liquidity to fund its business for another year. However, the company noted in its most recent earnings call that it will need an additional $600 million to fund its transition to TDD-LTE and an extra $150 million to $300 million to maintain its existing mobile WiMAX business.
Clearwire witnessed its stock fall more than 20 percent after Sprint announced a 15-year, $9-billion hosting deal with LightSquared at the end of July.
- see this Bloomberg article
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